Recently, some NdFeB scrap enterprises reported a certain degree of profit growth, with reduced losses and increased market confidence.
NdFeB scrap enterprises have always held an important position in the rare earth market. According to an SMM survey, the monthly production of domestic NdFeB scrap exceeds 8,000 mt, while the monthly production of Pr-Nd oxide from domestic NdFeB scrap averages over 2,500 mt. The total monthly supply of Pr-Nd oxide nationwide is over 9,500 mt, with the output from scrap enterprises accounting for more than 26% of the entire domestic Pr-Nd oxide market, making it a crucial part of the rare earth raw materials market.
However, for a long time, these scrap enterprises have faced severe production and sales difficulties. Due to the long-term inability of product selling prices to cover production costs and issues such as surplus capacity, many enterprises have been in a state of loss. Currently, there are only about ten NdFeB scrap enterprises still in operation.
Fortunately, the recent rise in rare earth oxide prices has brought new opportunities for scrap enterprises. Industry insiders have indicated that with the gradual increase in profits, scrap enterprises may end their long-term loss state, signaling a potential recovery and new development opportunities for the industry.
At the same time, although the current market situation of scrap enterprises has improved, attention must still be paid to the long-term sustainable development of the industry. Enterprises need to strengthen technological innovation and cost control to enhance competitiveness and profitability.
